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What is meant by “offshore Georgia”?
Under the term offshore Georgia is usually meant two special regimes:
- Free Industrial Zone (FIZ) — companies registered in the Poti FIZ (Poti FIZ, Tbilisi, Kutaisi, Hualing) are exempt from CIT, VAT, import/export duties, and dividend tax.
- Virtual Zone Company (VZC) for IT companies — 0 % CIT and 0 % VAT when dealing with foreign clients.
Both of these structures provide “tax zero”, which explains the popularity of the term “offshore Georgia” in search engines.
Georgia is a “white” offshore without blacklists
Georgia is not on the EU blacklist of countries with unfair tax practices: the updated list for February 18, 2025 includes 11 jurisdictions, while Georgia is not on it. This is an important difference between “offshore Georgia” and the BVI, Belize and Seychelles, which are regularly subject to review.
In addition, Georgia has about 60 double tax treaties (DTT), which facilitates cross‐border payment of dividends and royalties.
Offshore Georgia and comparison with BVI / Belize
| Criterion | Offshore Georgia (FIZ / VZC) | Classic offshore (BVI / Belize) |
|---|---|---|
| Income tax (CIT) | 0 % (FIZ, VZC) | 0 % |
| VAT / GST | 0 % (when exporting) | 0 % |
| Dividends | 0 % (FIZ/VZC) | 0 % |
| EU blacklist | Absent | Often included |
| DTT agreements | 60+ agreements | 0–12 |
| Economic implementation | No mandatory ESR (FIZ/VZC) | ESR compulsory; annual reporting |
| Real office | Minimum: legal address in FIZ | Expenses for substance (employees, office) are required |
| Banking services | Bank of Georgia, TBC, Wise, Payoneer | It’s hard to open an account remotely |
| Minimum capital | 1 GEL symbolically | 50–1,000 USD |
| Cost of service | 1,200–2,500 USD/year | 2,500–4,000 USD/year + ESR report |
Bottom line: Offshore Georgia offers similar tax advantages, but without the risks associated with “blacklists” and without the need for expensive substance-audits.
How to determine the appropriate form of “offshore Georgia”
| Purpose | Suitable mode | Justification |
|---|---|---|
| E-commerce / light manufacturing | FIZ (Poti, Tbilisi, Kutaisi) | zero rate + warehouses |
| IT / SaaS for abroad | Virtual Zone Company | 0 % CIT / VAT, fast registration |
| Investment SPV / holding company | FIZ (Tbilisi) | 0% on dividends + “white” DTT |
Step‐by‐step instructions for “offshore Georgia”
- Determine the mode: FIZ (Poti / Tbilisi / Kutaisi / Hualing) or Virtual Zone.
- Reserve the name online (1 day).
- Prepare Articles of Association and passports; translation and apostille (0-2 days).
- Contract with FIZ administration or apply to Revenue Service for VZC.
- Registration: 24 hours (VZC) / 3-5 days (FIZ).
- Open an account with Bank of Georgia / TBC or fintech companies (Wise, Payoneer).
Compliance and risks
- No ESR — Offshore Georgia has no requirements to hire employees or submit reports on the company’s activities, unlike BVI, where a report must be filed within 6 months after the end of the fiscal year.
- Transparency of tax rules — Georgia adopts BEPS recommendations, but retains the distributive CIT (tax applies only to dividends).
- Banking compliance — Georgian bank accounts are subject to KYC; origin of funds must be confirmed.
Questions and answers about “offshore Georgia”
- Is it possible to serve clients inside Georgia?
- Virtual zone — no (in this case tax benefits are lost). FIZ can sell to Georgia, but pays a one‐time tax of 4 % of the proceeds.
- How much does accounting cost?
- From 1,000 USD/year (minimum level of reporting — only sales/purchase book).
- Do I need to file reports abroad?
- No, if your income does not come from Georgia; foreign income is not taxable, only domestic reporting is required.
Conclusion
Offshore Georgia is a “white” alternative to traditional jurisdictions like BVI/Belize: the same 0% taxes, but without EU listing and without high economic costs. FIZ and Virtual Zone allow you to set up a headquarters between Europe and Asia, withdraw dividends without delays, and benefit from a network of over 60 DTT agreements.
Find out how much your business can save with Offshore Georgia
Leave a request — we will calculate your real tax savings and suggest the optimal regime (FIZ or Virtual Zone).
- Free tax calculation.
- Registration within 3–5 days.
- Account opening in Bank of Georgia / TBC Digital.